Rain

Thunderstorms have become more prevalent in the past week. Not all areas have gotten rain. Those which have will continue to need them.

Acres are down and Texas is still extremely dry.

Farmers report difficulty keeping some peanuts out of wilt and they don't have any peanuts on them yet.

Stands are less than perfect in most places.

We need the rain to continue because it is too late now to plant peanuts.

$900 Virginias and $1000 Valencas

Growers out west were offered $900 contracts for Virginia type peanuts and $1000 for Valencia type peanuts. Sign up was light.

Question is why not make the same offers in the Southeast? At least give farmers the opportunity to say no her. And, if they say yes then they might get over being mad at the shellers.

Farmers have often expressed frustration to me that the shellers treat folks in other parts of the country better than they do here. It was a big part of the acre cutback and yet I am not sure the peanut industry past the grower ranks understands this.

If something doesn't change pretty soon next year's plantings could be as low as this year's.

Hot an Dry Again

After last weeks welcome rains, it has gotten hot and dry and we again need rain if we are to make any crop at all.

We need a tropical storm to recharge soil moisture or else we live from shower to shower and suffer every time we get the least bit dry.

Couple that with acres being cut significantly and $1000 peanuts are a reality and when we run out of peanuts before the 2012 harvest peanuts could reach $2000 with very limited peanuts to sell at that level.

Last Week's Rain

Last week most parts of the Georgia peanut belt got some measurable rain. For most areas it was enough to finally get a stand. Also for most areas it was not nearly enough to make the moisture meet. We will either need a general rain like a tropical storm or will need weekly rainfall to make the crop.

Stands are not that great on dryland that had some of the peanuts come up and the rest of the seed cook in the field.

We are still challenged with the 11 crop.

August in June

Last week prices were reported as high as 93 cents for kernel sales for processing. Those peanuts were headed to Nicaragua which means less supply for domestic manufacturers.

This week highs continued in the 100's with records being shattered. Windy conditions continued to help the heat send evaporation through the roof.

Wells are having to be lowered and some fields abandoned. Lowering wells also increases energy cost and in some situations means a higher horsepower pumping unit.

Planting is at a standstill and tomorrow is the final deadline for planting if you are to have any coverage under the crop insurance program.

Normally we would expect to see the crop conditions and temperatures we are seeing now in August.

The peanut industry better brace up. Farmers need to hold on to uncommitted peanuts. Save some miraculous circumstance we will run out of peanuts before the 2012 harvest.

I have never seen $2000 per ton peanuts but the way it is shaping up now I might just get to see that next year. At 93 cents, farmers stock should be at $1000 per ton right now.

New Drought Classification

Even though we have had some showers scattered around lately, the weatherman said today we are likely going to see our drought classification move to exceptional. This is the worst classification for drought..."it just don't get no worse."

For peanuts the last time a drought caused a real price spike of significance was in 1990. That year it happened late season and hurt yields. This year the impact has been early to already reduced planting intentions. Now farmers are concerned about making enough cotton to cover their contracts so many acres which might have still seen peanuts are being diverted to further cotton acres.

I think we are in a critical situation and not sure but if things don't change we might need life support.